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City of Santa Ana, CA - � 1 11 j )':'
<br />Table - 24: Volumetric Cost Recovery over Tiers for FY 18/19
<br />Tier 1
<br />80%
<br />40%
<br />5% 100%
<br />Tier 2 20% 60% 95% 0%
<br />To maintain a rate structure that encourages conservation, Black & Veatch examined the incremental
<br />costs associated with Tier 2 levels of service. We are recommending that the City move from a 16
<br />percent rate differential to a 20 percent differential between Tier 1 and Tier 2 rates.
<br />Design of Private Fire Protection
<br />The design of private fire protection connection charges is essentially the same as that for the base fee.
<br />The difference is that for private fire connections, the industry standard is to designate the 6" diameter
<br />connection as having a flow equivalency of 1.0.
<br />Revenue Sufficiency
<br />Presented in Table 25 is a comparison of Test Year allocated cost of service with revenues under the
<br />suggested water rate structure. Test year costs of service are obtained from Table 20 and the proposed
<br />rates recover essentially 100 percent of the total cost of service. Note that for FY 14/15 through FY
<br />17/18, the rates were also designed so that each customer class recovers its proportionate cost of
<br />service (about 100 percent).
<br />Table - 25: Revenues under Proposed Rates for TY 18/19 (Effective March 1, 2015) — Scenario 1
<br />mm mok � 0
<br />11
<br />Column Reference
<br />[S]
<br />[2]
<br />131
<br />1-
<br />Single Family Residential
<br />21,208,500
<br />21,247,600
<br />100.2%
<br />2
<br />Multi- Family Residential
<br />15,931,700
<br />15,917,700
<br />99.9%
<br />3
<br />Commercial,
<br />10,486,200
<br />10,465,800
<br />99,8%
<br />4
<br />Industrial
<br />2,380,300
<br />2,382,000
<br />100.1%
<br />5
<br />Institutional
<br />4,441,400
<br />4,472,300
<br />100.7%
<br />6
<br />Irrigation
<br />2,039,800
<br />2,049,000
<br />100.5%
<br />7.
<br />Outside City
<br />40,800
<br />40,900
<br />100.2%
<br />8
<br />Recycled Water
<br />235,100
<br />235,000
<br />100.0%
<br />9
<br />Subtotal
<br />$56,763,800
<br />$56,810,300
<br />100.1%
<br />10
<br />Public Fire Protection
<br />0
<br />0
<br />0.0%
<br />11
<br />Private Fire Protection
<br />392,300
<br />394,100
<br />100.5 °%
<br />12
<br />Subtotal
<br />$392,300
<br />$394,100
<br />100.5%
<br />13
<br />Total System
<br />$57,156,100
<br />$57,204,400
<br />100.1%
<br />BLACK & VEATCH I Water Rate Study
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